A QUICK REVIEW ON BOOKKEEPING AND ACCOUNTING

The terms “bookkeeping” and “accounting” are often used interchangeably by common people. Although the terms are co-related, there exists an essential difference between them. The difference in the two concepts give rise to two different careers. It is generally observed that people with no commerce background believe that both are same. The key difference between them is that a bookkeeper records the day-to-day financial transactions whereas an accountant looks more at the bigger picture. Now, the bookkeepers and accountants are equipped with extensive knowledge and updated cloud accounting software. The cloud-based accounting software like Xero, QuickBooks, Sage, FreshBooks have minimised the challenges faced with traditional methods. Xero bookkeepers in Brisbane use cloud accounting software Xero to help businesses grow.

In addition to the above, bookkeepers and accountants differ in their roles. Although both the careers require number crunching skills yet accounting is more analytical in nature. The skills needed for a bookkeeper is to be detail driven in order to record the daily financial transactions. However, accountants need to possess more logical and problem-solving skills because they have to focus on the bigger side of the picture. A bookkeeper is responsible to jot down the financial details while an accountant uses those inputs to review and analyse the financials of the business. In order to make careers in any of the two, one should be good with numbers and calculations.

A bookkeeper may start a career with small firms or organisations along with a degree in finance or accounting. This enables to gain exposure in the field of accounting. On the other hand, accountants generally start their career by passing certified public accountant (CPA) exam. However, a bookkeeper can also become an accountant after much needed study and experience. Bookkeeping can be a good starting point to enter into the field of accounting for a long-term career.

The above discussion is sufficient to get a brief idea about bookkeepers and accountants. In Australia, bookkeepers and accountants have migrated towards cloud-based software. Adoption of cloud-based software has reduced the paperwork load as well as ensured increased business profits. Not only big and established businesses but also small businesses are able to reap out maximum benefits. For instance – accounting via Sage accounting in Australia enables small businesses to outshine from others. In this way cloud-based accounting software suits the business needs of every organisation depending on their type and size of business.